An Introduction To Investing – Continued
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” – John D. Rockefeller
Accounting Stock photos by Vecteezy
Here, we will continue to delve into the world of investing, ensuring you know the best place to put your money! We will explain the role of ISAs, some general advice to keep safe, and a few alternative options for investments…
ISAs
An ISA is a savings account where you can put your money and receive interest tax free! There are multiple different types of ISA accounts, including a lifetime ISA and a stocks and shares ISA. These are tax free, hence you will not have to pay capital gains tax – consequently meaning more money for you to keep! You can deposit up to £9,000 per year in a Junior ISA, so plenty of room to deposit some of your hard-earned money!
Keeping Yourself Safe
Follow these tips and tricks to guarantee safety whilst investing!
- Check on the security of your investments … Can you easily take money in and out?
- Are the investments regulated, so you can be sure your money isn’t stolen…
- Consider getting financial advice from the professionals.
Alternative Investment Types
In addition to ISAs, there are a whole host of other options when looking where to invest your money, and some examples of these include…
- Bonds: Bonds are a type of debt the government/large corporations issue, where you are effectively a lender, and in return, you receive interest on the bond, and eventually the value of the bond back as well. Bonds are considered a very safe, low risk investment option.
- Mutual Funds: Mutual funds refer back to the idea of diversification mentioned earlier. This involves an investment into a package consisting of various stocks AND bonds. This diversification of multiple investments reduces risk!
- Certificates of Deposit (CDs): A CD is a savings account where you deposit money for an agreed amount of time, and in return, receive a fixed amount of interest. Your money is fixed in the account, and in return you often receive a greater interest rate than you would from a savings account!
Now you should have all the information you need to be able to make safe, informed investment decisions. In need of any more information? Check out the Money Saving Expert page for some key ISA information!
It’s important to note that this information is not financial advice, and is for informational purposes only.
| Key Terms:
Capital Gains Tax – Tax you pay on the profits from selling an asset. Regulated – Investment platforms that are controlled and prevent any fraudulent activities. Bonds – Type of issued debt that is seen as a secure investment. Mutual Funds – Also a safe investment, a combination of both stocks and bonds. |
